# Towards Explainable Industrial Anomaly Detection via Knowledge-Guided Latent Reasoning

arXiv: https://arxiv.org/abs/2602.09850 · HTML: https://mlsanity.com/paper/2602.09850/

## Key facts

- Cited by 6 papers in the map (data through 14 Oct 2026).
- Placed in Chain-of-thought reasoning for driving, one of 17 directions in LLM reasoning.
- Builds on 27 of its 63 references that are in the map.
- First posted on arXiv 10 Feb 2026.

## Placed in

- LLM reasoning / [Chain-of-thought reasoning for driving](https://mlsanity.com/lr/chain-of-thought-reasoning-for-driving/)

## Builds on (most cited first, 27 of 27)

- [Qwen2.5-VL Technical Report](https://mlsanity.com/paper/2502.13923/) (2025)
- [GPT-4o System Card](https://mlsanity.com/paper/2410.21276/) (2024)
- [Gemini 2.5: Pushing the Frontier with Advanced Reasoning, Multimodality, Long Context, and Next Generation Agentic Capabilities](https://mlsanity.com/paper/2507.06261/) (2025)
- [Qwen3-VL Technical Report](https://mlsanity.com/paper/2511.21631/) (2025)
- [LLaVA-OneVision: Easy Visual Task Transfer](https://mlsanity.com/paper/2408.03326/) (2024)
- [OpenAI GPT-5 System Card](https://mlsanity.com/paper/2601.03267/) (2025)
- [Training Large Language Models to Reason in a Continuous Latent Space](https://mlsanity.com/paper/2412.06769/) (2024)
- [Scaling up Test-Time Compute with Latent Reasoning: A Recurrent Depth Approach](https://mlsanity.com/paper/2502.05171/) (2025)
- [VL-Rethinker: Incentivizing Self-Reflection of Vision-Language Models with Reinforcement Learning](https://mlsanity.com/paper/2504.08837/) (2025)
- [AnomalyCLIP: Object-agnostic Prompt Learning for Zero-shot Anomaly Detection](https://mlsanity.com/paper/2310.18961/) (2023)
- [ThinkAct: Vision-Language-Action Reasoning via Reinforced Visual Latent Planning](https://mlsanity.com/paper/2507.16815/) (2025)
- [Machine Mental Imagery: Empower Multimodal Reasoning with Latent Visual Tokens](https://mlsanity.com/paper/2506.17218/) (2025)
- [Soft Thinking: Unlocking the Reasoning Potential of LLMs in Continuous Concept Space](https://mlsanity.com/paper/2505.15778/) (2025)
- [Latent Visual Reasoning](https://mlsanity.com/paper/2509.24251/) (2025)
- [Think Silently, Think Fast: Dynamic Latent Compression of LLM Reasoning Chains](https://mlsanity.com/paper/2505.16552/) (2025)
- [Reasoning Beyond Language: A Comprehensive Survey on Latent Chain-of-Thought Reasoning](https://mlsanity.com/paper/2505.16782/) (2025)
- [SRPO: Enhancing Multimodal LLM Reasoning via Reflection-Aware Reinforcement Learning](https://mlsanity.com/paper/2506.01713/) (2025)
- [MMAD: A Comprehensive Benchmark for Multimodal Large Language Models in Industrial Anomaly Detection](https://mlsanity.com/paper/2410.09453/) (2024)
- [Reasoning to Learn from Latent Thoughts](https://mlsanity.com/paper/2503.18866/) (2025)
- [Seek in the Dark: Reasoning via Test-Time Instance-Level Policy Gradient in Latent Space](https://mlsanity.com/paper/2505.13308/) (2025)
- [Multimodal Chain of Continuous Thought for Latent-Space Reasoning in Vision-Language Models](https://mlsanity.com/paper/2508.12587/) (2025)
- [Latent Chain-of-Thought for Visual Reasoning](https://mlsanity.com/paper/2510.23925/) (2025)
- [AnomalyR1: A GRPO-based End-to-end MLLM for Industrial Anomaly Detection](https://mlsanity.com/paper/2504.11914/) (2025)
- [Reasoning Within the Mind: Dynamic Multimodal Interleaving in Latent Space](https://mlsanity.com/paper/2512.12623/) (2025)
- [IAD-R1: Reinforcing Consistent Reasoning in Industrial Anomaly Detection](https://mlsanity.com/paper/2508.09178/) (2025)
- [Sherlock: Self-Correcting Reasoning in Vision-Language Models](https://mlsanity.com/paper/2505.22651/) (2025)
- [AD-FM: Multimodal LLMs for Anomaly Detection via Multi-Stage Reasoning and Fine-Grained Reward Optimization](https://mlsanity.com/paper/2508.04175/) (2025)

## Built on by (most cited first, 6 of 6)

- [The Latent Space: Foundation, Evolution, Mechanism, Ability, and Outlook](https://mlsanity.com/paper/2604.02029/) (2026)
- [WMoE-CLIP: Wavelet-Enhanced Mixture-of-Experts Prompt Learning for Zero-Shot Anomaly Detection](https://mlsanity.com/paper/2603.06313/) (2026)
- [Beyond Surface Imitation: Contrastive Modeling for Reasoning Path Alignment in Multimodal In-Context Learning](https://mlsanity.com/paper/2609.10177/) (2026)
- [ADOPD: Reference-Privileged On-Policy Distillation for MLLM-Based Industrial Anomaly Detection](https://mlsanity.com/paper/2608.09789/) (2026)
- [Industrial Anomaly Detection via Defect-Grounded Reasoning in Visual Latent Space](https://mlsanity.com/paper/2609.29457/) (2026)
- [Is In-Domain Training Enough for Fine-Grained Industrial Anomaly Understanding?](https://mlsanity.com/paper/2610.12310/) (2026)

## Abstract (arXiv)

Industrial anomaly detection demands precise reasoning over fine-grained defect patterns. However, existing multimodal large language models (MLLMs), pretrained on general-domain data, often struggle to capture category-specific anomalies, thereby limiting both detection accuracy and interpretability. To address these limitations, we propose Reason-IAD, a knowledge-guided dynamic latent reasoning framework for explainable industrial anomaly detection. Reason-IAD comprises two core components. First, a retrieval-augmented knowledge module incorporates category-specific textual descriptions into the model input, enabling context-aware reasoning over domain-specific defects. Second, an entropy-driven latent reasoning mechanism conducts iterative exploration within a compact latent space using optimizable latent think tokens, guided by an entropy-based reward that encourages confident and stable predictions. Furthermore, a dynamic visual injection strategy selectively incorporates the most informative image patches into the latent sequence, directing the reasoning process toward regions critical for anomaly detection. Extensive experimental results demonstrate that Reason-IAD consistently outperforms state-of-the-art methods across multiple tasks. The code will be publicly available at https://github.com/chenpeng052/Reason-IAD.